Broker Authority

Broker authority allows individuals, partnerships, or corporations to arrange goods transportation using an authorized Motor Carrier (MC) Number.

Broker authority is granted to individuals, partnerships, or corporations that facilitate the transportation of goods on behalf of others using an authorized Motor Carrier (MC) Number.

There are different types of broker authority:

  1. Brokers of Property (excluding household goods): These brokers arrange the transportation of various belongings for others, utilizing an authorized Motor Carrier (MC) Number.

  2. Brokers of Household Goods: This type of broker focuses on arranging the transportation of personal items and property used in homes for others, also using an authorized Motor Carrier (MC) Number.

When obtaining broker authority, it is essential to keep the following factors in mind:

  1. Active Motor Carrier (MC) Number: To operate as a broker, you must have an active Motor Carrier (MC) Number, which authorizes you to arrange transportation services.

  2. Form BMC-84 (Broker Surety Bond) or Form BMC-85 (Trust Fund Agreement): You need to provide either a Form BMC-84, which is a broker surety bond amounting to $75,000, or a Form BMC-85, which is a trust fund agreement of the same value. This serves as financial security for your operations as a broker.

  3. Form BOC-3 (Designation of Process Agents): It is necessary to submit a Form BOC-3, which designates process agents. These agents serve as representatives for legal matters in the various states where you operate.

It's important to note that as a broker, you don't assume responsibility for the goods being transported, nor do you take possession of them. Your role primarily involves facilitating the arrangement of transportation services between shippers and authorized motor carriers.

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